Budget deficit hits Rs.1.3tn as revenues languish

Sri Lanka’s fiscal deficit for the first 10 months of 2020 expanded by nearly Rs.488 billion from the same period in 2019 as revenues, mainly coming from taxes declined. According to the latest fiscal data available from January through October, the government recorded a budget deficit of Rs.1, 317.2 billion compared to Rs.829.3 billion in the same period in 2019.

Market bull run continues; ASPI sets new all-time high

Turnover tops Rs.12.8bn amid highest number of trades carried out in a single day The Colombo Stock Exchange’s (CSE) phenomenal ascent continued yesterday also, renewing records set just the previous day and market turnover hitting double-digits.

Stocks hit new all-time high; ASPI crosses 8,000-point mark

Sri Lanka’s stocks yesterday hit fresh highs with benchmark All Share Price Index (ASPI) crossing the 8,000-point mark for first time in Colombo Stock Exchange’s (CSE) 35-year history amid more than dozen Hayleys group companies announcing share splits.

Merchandise exports flirt with US $ 10bn surpassing target

Sri Lanka has recorded an income of US $ 9.9 billion from merchandise exports in 2020, surpassing the US $ 9.5 billion new target set in the middle of the year, after the pandemic crippled trade flows, forcing the authorities to revise down the US $ 13.5 billion target set at the beginning of the year.

Dovish Central Bank introduces small biz lending targets

While deciding to keep policy rates unchanged at the maiden policy meeting held for this year on Monday, the Monetary Board of the Central Bank yesterday announced the introduction of lending targets for small business to accelerate the money flow into the productive economy.

Stock market bull run continues; ASPI hits all-time high

The indices at the Colombo Stock Exchange (CSE) entered new territory yesterday, breaking all the previous records, while recording over Rs.12 billion turnover for the second consecutive day, amid heightened market activity.

Plantation sector wage deal hits deadlock

With the latest attempt to reach a consensus between Regional Planation Companies (RPCs) and trade unions on a wage structure to grant Rs.1, 000 minimum daily wage to plantation workers bearing no fruit, Labour Minister Nimal Siripala de Silva is looking forward to seek the approval of the Cabinet of Ministers this week to grant the proposed wage increase under the provisions of the Wages Board Ordinance.

Stock market steams ahead amid local investor bullishness

The Colombo Stock Exchange (CSE) continued its bull run full steam ahead yesterday, smashing records and setting new ones, amid tremendous local investor bullishness, though foreigners continued to keep away.

South Asia’s largest tyre factory declared open

The first phase of South Asia’s largest tyre manufacturing plant, Ferentino Tyre - which was formerly known as Rigid Tyre - was opened by President Gotabaya Rajapaksa yesterday.

President clears the air on East Container Terminal

President Gotabaya Rajapaksa yesterday stressed that the East Container Terminal (ECT) of the Colombo Port would not be sold or given on lease to any outside party.

Poor show of rubber plantations set to jeopardise entire sector

The continuing poor performance of rubber plantations could pull down the entire industry in the near future, including the manufacturers who are making steady progress, unless new strategies are conceptualised, a senior industry representative said.

LanwaSanstha to commission US $ 75mn cement plant this May

LanwaSanstha Cement Corporation Limited expects to commission the operations of its US $ 75 million state-of-the-art cement manufacturing cement plant in May this year, adding three million metric tonnes (MT) to Sri Lanka’s cement output.

Cabinet decision sought to overcome plantation sector wage stalemate

Amid continuous opposition from the Regional Plantation Companies (RPCs) to implement the proposed Rs.1, 000 daily wage for plantation workers, Labour Minister Nimal Siripala de Silva is expected to present a proposal to the Cabinet of Ministers today compelling the RPCs to grant the wage increase.

Indian Foreign Minister interacts with captains of local biz and industry

Indian External Affairs Minister Dr. S. Jaishankar on Thursday interacted with the captains of Sri Lankan business and industry that represented prominent business conglomerates and manufacturing entities in the country.

Fresh health guidelines issued to resume tourism

The local tourism sector was issued with a fresh set of health guidelines this week to accommodate international travellers in the coming months with the anticipated opening up of the country’s airports for tourism by end of this month.

Tea output projected to recover this year

Sri Lanka’s tea output is projected to recover this year, following an estimated 10 percent or 30 M/Kgs year-on-year (YoY) decline in the output in 2020, mainly due to the adverse weather conditions prevailed in the country, according to Forbes & Walker Tea Brokers.

World Bank forecasts 3.3% economic growth for Sri Lanka this year

The World Bank projects Sri Lanka’s economy to grow at the modest rate of 3.3 percent this year before decelerating to 2 percent in 2022, the global lender said in its January 2021 Global Economic Prospects report released this week.

Central Bank sees need for continuous interventions to support economy

With Sri Lanka’s economy estimated to have recorded a contraction in 2020, the country’s Central Bank (CB) yesterday assured continuous monetary and fiscal interventions to support the economy to regain its “lost momentum” to the COVID-19 pandemic and to return to the envisaged high growth path.

SOE losses surge as State banks’ profits swoon

Losses of State-owned enterprises (SOEs) spiked to Rs.10.4 billion in the eight months to August, 2020, from a combined loss of Rs.1.1 billion in the whole of 2019, predominantly due to the earnings swoon in key State-run banks and the insurance company.

Inflation accelerates in December to 4.2%

Headline inflation, as measured by the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI) increased marginally to 4.2 percent in December 2020 from 4.1 percent in November 2020.

Colombo stocks mark turnaround in 2020

The Sri Lankan stock market ended 2020 on a positive note yesterday, marking a year in which the Colombo Stock Exchange (CSE) has seen indices indicate noteworthy resilience and attract record-breaking levels of trading activity.

Tourism industry says everything under control

Stakeholders of Sri Lanka’s tourism industry yesterday assured that the ongoing pilot project carried out as a first step towards re-opening the country for tourists, is going ahead as planned despite some expected hiccups, for which appropriate courses of action has been planned out.

Modified protocols shared with industry to handle tourism revival pilot project

The Ministry of Tourism on Sunday (27) put out a set of modified protocols that are to be followed and the responsibilities of each stakeholder so that the execution of the ongoing pilot project aiming to review the country’s tourism industry amid the COVID-19 pandemic is successfully carried out.

President inspects damage caused to maize cultivation by fall armyworm caterpillar

President Gotabhaya Rajapaksa on Saturday (26) visited Pahalagama, Elapattu in Anuradhapura and inspected the damage caused to maize cultivation by the fall armyworm caterpillar.

Export earnings fall for second month in November

Sri Lanka’s merchandise export earnings suffered for the second consecutive month in November due to the adverse impact of the second wave of COVID-19 pandemic that began in early October, which slowed down manufacturing and disrupted port related activities.

RPCs submit fresh proposal to boost worker earnings

Taking a cue from the success of the smallholder sector, Sri Lanka’s Regional Plantation Companies (RPCs) have handed over a fresh proposal aimed at radically expanding worker earnings during a recently concluded meeting with the Labour Minister and trade union leaders.

Govt. says yet to reach final decision on ECT

The government yesterday reaffirmed its commitment to reach a final decision on the East Container Terminal (ECT) of Colombo Port after scientifically analysing all factors related to the terminal from an international business perspective.

Foreign financing of budget turns negative as govt. cuts foreign debt

Despite the recent rating downgrades on elevated debt repayment risks, Sri Lanka has significantly cut down its reliance on foreign debt to fund budgets as the government’s balance sheet showed a net repayment of such debt.

Jan-Sept. govt. revenue shortfall at Rs.384bn

The government revenue declined in the nine months to September as the economic toll of COVID-19 took hold on businesses and consumption, which generate tax income, as economic activities contained to a greater degree in the period.

Challenging operating environment to weigh on Lankan banks: Fitch

Sluggish economic activity, external and domestic vulnerabilities, muted private credit growth and the sovereign’s weakened credit profile are significant downside risks to the operating environment for Sri Lankan banks, Fitch Ratings said in a new report.